The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has recently sanctioned four companies linked to Venezuela’s oil sector. This move also involves blocking four oil tankers that support Nicolás Maduro’s regime.
Maduro’s government relies heavily on a network of ships to evade sanctions and earn money. This underscores the ongoing risks for those involved in Venezuelan oil trading. Secretary of the Treasury Scott Bessent emphasized that the U.S. will not tolerate Maduro profiting from oil exports while the country battles drug trafficking.
In recent years, the U.S. has taken various actions against Venezuela. In January 2019, OFAC targeted the state-owned oil firm, Petroleos de Venezuela, known as PDVSA. The aim was to restrict Maduro’s access to oil revenue that helps sustain his government.
Today’s sanctions add to earlier measures against individuals and companies linked to PDVSA. The specifics of the sanctioned entities include:
- NORD STAR: Owned by Corniola Limited and operated by Krape Myrtle Co LTD.
- ROSALIND (also known as LUNAR TIDE): Owned by Winky International Limited.
- DELLA: Owned by Aries Global Investment LTD, along with another tanker, VALIANT.
As a consequence of these sanctions, all properties of the designated companies in the U.S. are now blocked. Any transaction involving these blocked entities is strictly prohibited unless authorized by OFAC.
Violating these sanctions can lead to serious penalties for both U.S. and foreign individuals. Financial institutions must be cautious as well, as engaging with blocked entities could expose them to sanctions risks.
Sanctions like these aim not just to punish but to encourage a change in behavior. The process to seek removal from OFAC’s lists exists for those who comply with the law.
According to a recent survey by the International Institute for Strategic Studies, the Venezuelan oil sector has shrunk significantly over the past few years, impacting the global oil market. In 2014, Venezuela produced 2.5 million barrels per day, but this number has dropped to about 500,000 barrels today. This drastic reduction highlights the effectiveness of international sanctions in altering a nation’s economic landscape.
For more details on these sanctions and the entities involved, visit the Treasury Department’s recent actions page.
